Potential Payment Problem...BidPay

[beakerme]

Hello all!
I am a frequent lurker here and have a question for you all.

I sell a lot of small $ value auctions per week (200+) and this week one Canadian buyer has pretty much bought everything on offer! He is into me for over $350US (a lot for me) and has requested to pay via bidpay in multiple amounts not to exceed $100US each. Does this all sound fishy to anyone? I have not come across this kind of request before and this buyer has only been registered less than 1 month. He has been buying like MAD in that time though and has spent thousands of $ in the last few weeks. Has anyone out there had a problem with credit card issues/chargebacks with BidPay? I need some reassurance :0)
Thanks!
Jenn

[amberwoodottawa]

Jenn
We discussed Bid Pay on this board several months ago with respect to possible charge backs. One of the interesting things that I am aware of is that purchases less than $100 are often not pre-verified by merchants with the charge card companies. The same may be true with BidPay/Western Union.

If a credit card was stolen, then the buyer could buy some time by not alerting the credit card companies too soon.

I havent looked at their structure of charges but perhaps it is less expensive for him to purchase Money Orders through BidPay in smaller amounts.

The earlier consens we had on the board was unusual, infrequent if ever, anyone had heard of a BidPay charge back unless the Money Order was lost in which case it was replaced.

The way I see it, is that for $350 you are looking at 3 Money Orders. The only suggestion that I would have is to wait until you receive the Money Orders form BidPay. (Some sellers ship as soon as they receive notice of the MO being mailed).

Malcolm

[beakerme]

Thanks Malcolm,

Holding the product was my thought too. It just seems strange to me and he has stated his credit card will not allow purchases over $100US at a time on it. What kind of card has that kind of limitation anyway?! It just looks as if he's been on a bit of a spending spree which is a bit suspicious...but I'd hate to piss him off if he is indeed legit.

thanks so much for the info!
Jenn

[muminlaw]

Jenn, I've been accepting BidPay (Western Union Auction Payments) for almost as long as I've been selling on eBay and have never, NEVER had a problem. I ship as soon as I receive the email confirmation (the second email) and it's my understanding that, if there's a problem, and if you have shipped on receiving the confirmation, then BidPay will cover the amount! I've never had to put them to the test == they've come through for me every time! 🙂 In fact, BidPay/WUAP is the only online payment service I accept!

Glenda

[llee2]

Jenn,

Unlike Glenda, I've had several problems with Bidpay/WUAP. Aside from customer service issues when contacting them (they usually take about a week to get back to you with some canned response), there are serious chargeback issues. I've had their money orders bounce despite the fact they claim they are as good as cash. These were not non-receipt claims and Bidpay did little to explain to me the reasons why. I'm not the only one either - check out www.bidpaysucks.com - this person ran into the same crap I did with Bidpay - a returned MO after the product shipped. If you are going to accept Bidpay with this suspicous bidder, I would strongly recommend that you treat it as a cheque and not ship until the MO clears.

Lincoln

[llee2]

Oh, and by the way, if you need to get into contact with one the reps at Bidpay let me know. I don't know if I can post the contact number here on this forum without getting pink slapped. Anyways, Bidpay's customer service number is automated and gives the same kind of info as the website (tracking for MO's etc.) If you need to actually talk to someone there and get something done pronto, I have their extension where you get can actually get to talk to someone.

[rd1000]

The only reason I can think of for having a $100.00 credit limit is the secured credit cards. The limit is the amount you give the card company to hold as security.

Rob

[gem-n-i-gemstonz]

Here is a direct quote from the BidPay site regarding stolen credit cards...

"7. What happens if Auction Payments sends me a money order paid for with a stolen credit card?
Upon receiving notice from the correct cardholder, we will email you with a request to cancel the money order. If you have already cashed the money order, we will ask you not to ship the item. If the item has already been shipped, no further action will be required.

If you have not cashed the money order and have not shipped the item, we will ask you to destroy the money order and consider the transaction null and void. If the item has already been shipped, we will typically honor the money order, absent unusual circumstances."

Notice in this last sentence the word "typically". I hadnt noticed it before, and now I am wondering.....

Thanks for the heads-up Lincoln

Jaqui

[llee2]

No problem,

It's probably the rare case, but having been stung before it makes you wonder. Fraud is going to happen no matter what payment service you use. However, Bidpay seems to convey the illusion that once the MO is confirmed, you can ship the item without having to worry about the MO bouncing. Simply not true. What really pi$$ed me off about Bidpay though is their lack of customer service. There was no urgency in their responses and no explanation offered. To this day I still have no idea why payment was stopped on a $200+ money order.

You may not want to stop using Bidpay but consider telling your buyers that it will be treated as a cheque. Items will ship only when the MO is received and has cleared the bank.

Lincoln